DealerMark.com / Tamara Seymour


Does your dealership call L.A., Houston, Chicago or Miami home? If
so, you've probably already set up your shop to cater to the ever-
increasing number of Hispanic consumers in your region. But these
days, you don't have to do business in one of these grande markets to
know that the Latino population is gaining in both size and
purchasing power all over the U.S.—that includes metro areas,
suburbs, and rural communities alike.



What does this mean to you as a dealer? With more than 41 million
people identifying themselves as Hispanic/Latino, it's time your
dealership took a proactive rather than reactive approach in building
relationships with this under-served sector. Consider this: Hispanics
are the nation's largest minority group among new-vehicle buyers,
according to a recent report by J.D. Power and Associates, and are
responsible for nearly ten percent of all new-vehicle sales. Plus,
they account for 20 percent of all pre-owned sales. Can your
dealership afford to let this business slip through your fingers and
into the hands of your culturally savvy competitors?



Before you ramp up your efforts to reach the Hispanic segment in your
own backyard, it's important to develop a thorough understanding of
today's Hispanic/Latino consumers. Here, we've compiled answers to
questions being asked today by dealers who want to tap into this
sizeable and increasingly sophisticated car-buying consumer group.



What are the key points I need to know about the Hispanic population,
relevant to my business?
Truckloads of data are dumped on dealers all the time. Sure, 41.3
million people is a lot of people, but how does that translate into a
would-be customer base?



· Key Point #1: Grasp the significance of the numbers. Table
1 offers an expanded view of the latest facts and figures. But the
short of it is this: As the Hispanic population continues to grow by
leaps and bounds, so will the Hispanic consumer's demand for
vehicles. "The Hispanic market is the `Baby Boomer' of today," says
Noreen Olsen, president of Pulse Multi Media Group, a full-service ad
agency with roots in both the Hispanic and general market arenas. She
stresses the importance of cultivating not only the existing
consumer, but the up-and-coming Hispanic consumer as well. "One out
of every two people born in the U.S. today is Hispanic; they are the
future consumers of our country. So those who focus on this market
sooner rather than later are going to reap the benefits."



· Key Point #2: Recognize the differences among sub-sets of
the Hispanic population. The Hispanic market includes Latinos of
different places of origin. Therefore, distinct cultural traditions
and beliefs will further define sub-segments within the greater
Hispanic population, and from market to market. For example, dealers
in Miami, where the Hispanic population is mostly Cuban, may take
some different approaches in their marketing than a dealer in L.A.,
where Mexican communities flourish. Dialects may differ, tastes may
differ, and values may differ. The extra effort dealers can take to
identify and target with respect to nationality and culture is
sincerely appreciated by Hispanics, who reward such sensitivity with
repeat business.



· Key Point #3: Understand "Assimilation." Assimilation, as
defined by the Pew Hispanic Center (pewhispanic.org), is "the process
by which immigrants and their offspring adopt some values, beliefs,
and behaviors more characteristic of the U.S. culture than the
culture of the countries from which they or their ancestors
originate." A main factor that determines the level of assimilation
or acculturation is the adoption of the English language. Today, more
than half of Latinos speak English well. But Olsen points out, "Even
those who do speak English very well and are somewhat assimilated
choose to speak Spanish at home." While most Latinos acknowledge the
need for some level of acculturation, they are very proud of their
Hispanic heritage and expect to retain their language and culture.

· Key Point #4: Toss out stereotypes. Latinos—or any ethnic
group for that matter—cannot be lumped into one narrowly defined
category; nor can you build business practices around worn-out
stereotypes. According to Hispanic Business Magazine, the structure
of the U.S. Hispanic population, as it grows and matures, is changing
in almost every way, from educational levels and labor force
composition to household characteristics, accumulation of wealth and
media usage. Dealers who believe such myths as Hispanics aren't doing
much business over the Internet, or All I have to do is hire someone
at my dealership who speaks Spanish, are going to be disappointed
when they lose prospects to the dealer next door.



What are Hispanic consumers' attitudes toward buying a vehicle, and
what are they looking for in a dealer?

"There are two very powerful statistics that draw a strong
correlation for Hispanics and their impact on the automotive
industry," says Ericka Weaver, sales manager at AutoMercado.com, a
fully Spanish automotive Website where dealers can advertise their
pre-owned vehicles. "Hispanics are #1 in brand loyalty and #2 in
dealer loyalty." Weaver emphasizes that their general attitudes about
purchasing cars are very rooted in cultural influences. "For example,
in the past, Hispanics almost never used credit to purchase vehicles.
Many first generation Hispanics still maintain this school of
thought." But she points out that with many migrant Hispanics
deciding to uproot their families and remain in the U.S. permanently,
credit is becoming more of a necessity. "As a result, they are
beginning to take advantage of long-term credit solutions for large
investments such as cars and homes."



Affordability and financing options have long been influential in
purchasing decisions. Entry-level models continue to be popular.
However, the rise in buying power among Hispanics may signal that
high-end trucks, luxury sedans, sports cars, and SUVs will gain more
share in the future. While brand loyalty is a big deal today,
Hispanic consumers, just like other U.S. consumers, are paying more
and more attention to product performance (November 2005 Hispanic
Business Magazine "Car Customer Still King").



Following are some additional points to consider as your dealership
gears up to serve this population:



· Service should be highly personalized; customer service and
support services should be bilingual.

· Bilingual materials are preferred and are greatly
appreciated, but only if the Spanish translation is accurate and not
a direct translation from English.

· Hispanics seek respect, recognition, and honesty; word of
mouth is still the primary sales and advertising vehicle in the
Hispanic community.

· Let prospects know you're interested in their business; an
invitation is appreciated.

· Many Latinos desire to move up in society and provide a
better life for their families.

· Now more than ever, Hispanics want the convenience of
researching and locating cars and dealerships over the Internet.



What are manufacturers doing to reach this market?
Manufacturers have been pouring well-managed dollars into Hispanic
marketing and advertising for several years now. Today, manufacturers
are spending nearly $6 million in their Hispanic advertising efforts,
topping the list of dollars spent for all Hispanic advertising
categories.



"Ford has historically been a strong influence in the Hispanic
community," says Weaver of AutoMercado.com. "Both Ford and Toyota
really understand that it takes a grass roots approach to reach the
Hispanic car buyer. Recently, Toyota made a strategic move to market
heavily to the Hispanic community by utilizing TV, radio, and online
advertising combined with leveraging key relationships." Toyota's
marketing efforts have helped make the Corolla the #1 selling car in
the Hispanic market for several years running.



Nissan has also realized success by building brand trust with the
Hispanic population. According to Weaver, "Nissan recently instituted
some initiatives that focus on dealers who are located in heavily
populated Hispanic communities." She cites a well-received dealer
education campaign that informed dealerships about the Hispanic
consumer, and taught cultural differences, the how-tos of selling,
and buying habits. "In addition," says Weaver, "they created a
Hispanic dealer whom they marketed heavily on all print ads and in
branding material found within the dealerships. This dealer became
the face of Nissan for the Hispanic car buyer. He was friendly,
inviting, and most of all, Hispanic."



What about my dealership's own marketing and advertising efforts?

As more and more advertisers continue to target this lucrative
segment, dealers will need to make a solid financial commitment to
Hispanic advertising. But what's more important, says Olsen of Pulse
Multi Media, "They'll need to create, solidify, and maintain an
emotional connection to the Hispanic culture."



Make connections online

By now, most dealers know how important it is to have an Internet
presence. Yet many may not have considered Websites in languages
other than English. Today, online marketing companies are making it
easier for dealers to extend Internet sales through Spanish-language
Websites, online classifieds, and online leads.



Reynolds and Reynolds Company (www.reyrey.com) is one of the pioneers
in alternate language Websites, now offering 14 different languages
including Spanish through their WebMakerX® product. "The Spanish-
speaking customer, even if they're mixing English and Spanish at
home, is more comfortable conducting business in Spanish," asserts
Stephen Stauning, director of Reynolds Web Solutions. "Even if they
have a good command of the English language. Our research at Reynolds
Web Solutions found that most bilingual customers would like to
perform their automotive shopping in their native language, and
especially their research on the Internet."



Dealerships in some of the major Hispanic markets have recently
enlisted Reynolds' Spanish-language Websites, including Troy Aikman
Ford (www.troyaikmanford.com) in Dallas, Texas, Courtesy in Tampa,
Florida (www.courtesyespanol.com), and Pioneer Ford in Phoenix,
Arizona (espanol.pioneerford.com). Stauning adds, "We also have
dedicated Spanish speaking support personnel to help dealers who
prefer speaking in Spanish or who need help translating content on
their site."



Online classified advertising opportunities are available to dealers
through sites such as AutoMercado.com (a division of Trader
Publishing Company), which features pre-owned auto listings
exclusively from auto dealers—all in Spanish. Meanwhile, online
marketing giants AutoTrader.com and Autobytel are making headway into
the Hispanic market by teaming up with popular U.S. Hispanic Internet
portals such as Univision.com, MSN Latino, and others. These high-
traffic portals provide Hispanic consumers Spanish-language and
cultural content. Now, through these relationships with
AutoTrader.com and Autobytel, portals can also provide easy-to-use
tools for researching the right vehicle.



Reach your customers through Hispanic TV, radio, print, and
promotional events

Regardless of the degree of acculturation, most Hispanics tune in to
at least some "traditional" Spanish media, including broadcast TV
networks, Spanish-language spot TV, Galavision (cable), and Spanish-
language radio, magazines, and newspapers. Spanish-language media
tend to touch a large percentage of the Hispanic population, in part,
because there is less fragmentation compared to English-language
media.



Reaching out through Spanish-language media is not just about airing
your ads in Spanish. "Hispanic media is an extension of the culture,"
says Olsen, "It is important for those who have families back home to
stay informed about not only their native country, but their
families." Like TV, radio is a major presence in Hispanic households,
capturing some of the highest ratings among all stations in some
markets. "In many communities radio is on night and day—music is
definitely tied to the culture."



She says that to advertise effectively to your local Hispanic
community, you need to be familiar with the Hispanic media outlets in
your area. "But remember", advises Olsen, "you're not just buying
spots and dots (ratings), you're creating a connection with the
Hispanic market."



Another way to get involved with the community is to sponsor or
participate in promotional events. "You can tie your promotions to
special events related to the Hispanic market, such as Mexican
Independence Day or World Cup soccer." Olsen also suggests joining
your local Hispanic Chamber of Commerce or other Hispanic-focused
organizations, and keeping an up-to-date calendar of events on-hand
for your particular markets. "The more you do on a local level, the
better."



For dealers who are ready to make a commitment to Hispanic marketing,
Olsen and other Hispanic marketing experts offer these additional
tips:

Create a separate Hispanic marketing budget.

Commit to a consistent aggressive campaign for a year; running a
month or a quarter is not sufficient.

Tie your campaigns to relevant events, and consider celebrity
spokespeople.

Produce separate Spanish-language commercials, print ads, and
marketing materials with Spanish-speaking talent.

Recruit Spanish-speaking employees; ask your local Hispanic media
contacts if they can recommend recruitment venues.

Always be sensitive in your selling approach—relationships can be
developed and maintained for years to come and repeat business is
likely through referrals from friends and relatives.

Consider partnering with Hispanic marketing vendors who have
extensive knowledge and appreciation of the culture.

Don't forget about the other areas of your business when it comes to
marketing; special financing, servicing contracts and aftermarket
products are all important to the Hispanic consumer.

Consider hiring Hispanic professionals to "shop" your store and
provide feedback on their dealership experiences.

Does my dealership's infrastructure need to change to support my
Hispanic marketing efforts?

For long-term success, two things are key: educating your sales force
and communicating clearly with your customers.

Word of mouth is still the most powerful promotional vehicle among
Hispanics and a sales process that leaves a customer talking up your
dealership will likely generate additional sales. Having salespeople
and Internet sales managers who are bi-lingual can give your
dealership an added advantage.

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